Special education funding

AN ACT Relating to special education funding; amending RCW 1
28A.150.390, 28A.150.560, and 28A.150.392; adding a new section to 2
chapter 28A.155 RCW; creating a new section; and providing an 3
effective date. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. The legislature recognizes that students 6
receiving special education services are entitled, under both federal 7
and state law, to a free appropriate public education that enables 8
their full participation. Furthermore, special education is fully 9
part of the state's statutory program of basic education that is 10
deemed by the legislature to implement Article IX, section 1 of the 11
state Constitution.12
The legislature recognizes that a cap or enrollment limit on the 13
number of students receiving special education services that generate 14
state special education funding is not consistent with the state's 15
duty to provide a free appropriate public education. An enrollment 16
limit that fails to provide equity for all students with disabilities 17
affects all students in public schools. 18
The legislature recognizes that it has made significant 19
investments in special education funding in recent years, including 20
Z-0294.3
HOUSE BILL 1310
State of Washington 69th Legislature 2025 Regular Session
By Representatives Pollet, Couture, Reeves, Rude, Callan, Davis, Ryu,
Rule, Klicker, Alvarado, Street, Waters, Simmons, Berry, Griffey,
Reed, Paul, Salahuddin, Low, Macri, Bergquist, Nance, Doglio,
Timmons, and Scott; by request of Superintendent of Public
Instruction
Read first time 01/15/25. Referred to Committee on Appropriations.
p. 1 HB 1310
increasing the special education enrollment cap and increases to the 1
funding multipliers. 2
The legislature finds that even with the previous investments in 3
special education funding, school districts' expenses to provide 4
services often far exceed state funding, creating an inequitable 5
situation for school districts and students. The legislature supports 6
a system of funding that does not require school districts to 7
generate local funding to meet their obligation to provide special 8
education services. 9
The legislature further finds that along with reliable and 10
sufficient state funding, receiving special education services in the 11
least restrictive environment possible is crucial to student success. 12
A recent large scale study found that students who spend at least 80 13
percent of their day in a general education setting improved their 14
reading scores by 24 points and math scores by 18 points compared to 15
peers with similar disabilities in less inclusive settings.16
The legislature, therefore, intends to continue making progress 17
towards fully funding special education services by eliminating the 18
cap entirely, lowering the threshold to access special education 19
safety net funds, and increasing the tiered special education 20
multipliers, thereby giving every school district a funding increase.21
The legislature further intends to strengthen statewide efforts 22
to support inclusion, monitor and reduce disproportionality, and 23
support school districts in implementing a program of special 24
education that meets the needs of students and families across the 25
state. 26
Sec. 2. RCW 28A.150.390 and 2024 c 229 s 1 are each amended to 27
read as follows: 28
(1) The superintendent of public instruction shall submit to each 29
regular session of the legislature during an odd-numbered year a 30
programmed budget request for special education programs for students 31
with disabilities. Funding for programs operated by local school 32
districts shall be on an excess cost basis from appropriations 33
provided by the legislature for special education programs for 34
students with disabilities and shall take account of state funds 35
accruing through RCW 28A.150.260 (4)(a), (5), (6), and (8) and 36
28A.150.415. 37
(2) The excess cost allocation to school districts shall be based 38
on the following: 39
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(a) A district's annual average head count enrollment of students 1
ages three and four and those five year olds not yet enrolled in 2
kindergarten who are eligible for and receiving special education, 3
multiplied by the district's base allocation per full-time equivalent 4
student, multiplied by ((1.2)) 1.6381; 5
(b)(((i) Subject to the limitation in (b)(ii) of this subsection 6
(2), a)) A district's annual average enrollment of resident students 7
who are eligible for and receiving special education, excluding 8
students ages three and four and those five year olds not yet 9
enrolled in kindergarten, multiplied by the district's base 10
allocation per full-time equivalent student, multiplied by the 11
special education cost multiplier rate of either: 12
(((A) Beginning in the 2020-21 school year, either:13
(I) 1.0075 for students eligible for and receiving special 14
education and reported to be in the general education setting for 80 15
percent or more of the school day; or16
(II) 0.995 for students eligible for and receiving special 17
education and reported to be in the general education setting for 18
less than 80 percent of the school day;19
(B) Beginning in the 2023-24 school year, either:20
(I) 1.12)) (i) 1.5289 for students eligible for and receiving 21
special education and reported to be in the general education setting 22
for 80 percent or more of the school day; or 23
(((II) 1.06)) (ii) 1.447 for students eligible for and receiving 24
special education and reported to be in the general education setting 25
for less than 80 percent of the school day. 26
(((ii) If the enrollment percent exceeds 16 percent, the excess 27
cost allocation calculated under (b)(i) of this subsection must be 28
adjusted by multiplying the allocation by 16 percent divided by the 29
enrollment percent.))30
(3) The superintendent of public instruction may reserve amounts 31
up to .005 of the funding generated under subsection (2) of this 32
section to use for statewide special education activities outlined in 33
section 3 of this act.34
(4) As used in this section((:35
(a) "Base)), "base allocation" means the total state allocation 36
to all schools in the district generated by the distribution formula 37
under RCW 28A.150.260 (4)(a), (5), (6), and (8) and the allocation 38
under RCW 28A.150.415, to be divided by the district's full-time 39
equivalent enrollment. 40
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(((b) "Basic education enrollment" means enrollment of resident 1
students including nonresident students enrolled under RCW 2
28A.225.225 and students from nonhigh districts enrolled under RCW 3
28A.225.210 and excluding students residing in another district 4
enrolled as part of an interdistrict cooperative program under RCW 5
28A.225.250.6
(c) "Enrollment percent" means the district's resident annual 7
average enrollment of students who are eligible for and receiving 8
special education, excluding students ages three and four and those 9
five year olds not yet enrolled in kindergarten and students enrolled 10
in institutional education programs, as a percent of the district's 11
annual average full-time equivalent basic education enrollment.))12
NEW SECTION. Sec. 3. A new section is added to chapter 28A.155 13
RCW to read as follows: 14
(1) The superintendent of public instruction shall engage in 15
statewide special education activities to support students receiving 16
special education services. 17
(a) The statewide activities must include: 18
(i) Annually reviewing data from local education agencies, 19
including the percentage of students receiving special education 20
services, to ensure there is not a disproportionate identification of 21
students, as defined by the superintendent of public instruction in 22
accordance with federal requirements of the individuals with 23
disabilities education act, 20 U.S.C. Sec. 1400; and24
(ii) Providing technical assistance to school districts with 25
disproportionate data.26
(b) The statewide activities may include:27
(i) Providing professional development in inclusionary practices 28
to local education agencies, schools, and community partners in 29
promoting inclusionary teaching practices within a multitiered system 30
of supports framework to help safeguard against over-identification 31
and other issues related to disproportionality; 32
(ii) Maintaining common templates and resources including a 33
statewide tool for individualized education programs.34
(2) The superintendent of public instruction shall annually 35
report to the education committees of the legislature, in accordance 36
with RCW 43.01.036, by December 1st on the statewide activities 37
funded under RCW 28A.150.390(3). The 2025 and 2026 annual reports 38
must include an update on the impact of removing the cap on the 39
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special education enrollment percentage, including the impact on 1
safety net needs. 2
Sec. 4. RCW 28A.150.560 and 2023 c 417 s 6 are each amended to 3
read as follows: 4
(1) It is the policy of the state that for purposes of state 5
funding allocations, students eligible for and receiving special 6
education generate the full basic education allocation under RCW 7
28A.150.260 and, as a class, are to receive the benefits of this 8
allocation for the entire school day, as defined in RCW 28A.150.203, 9
whether the student is placed in the general education setting or 10
another setting. 11
(2) The superintendent of public instruction shall develop an 12
allocation and cost accounting methodology that ensures state general 13
apportionment funding for students who receive their basic education 14
services primarily in an alternative classroom or setting are 15
prorated and allocated to the special education program and accounted 16
for before calculating special education excess costs. The proration 17
and allocation of general apportionment funding allocated to the 18
special education program may not be based on an individual 19
district's least restrictive environment percentage. A uniform 20
percentage of general apportionment funding for special education 21
students may be adopted by the superintendent of public instruction 22
for proration and allocation.23
(3) Nothing in this section requires districts to provide 24
services in a manner inconsistent with the student's individualized 25
education program or other than in the least restrictive environment 26
as determined by the individualized education program team.27
(((3))) (4) The superintendent of public instruction shall 28
provide the legislature with an accounting of prorated general 29
apportionment allocations provided to special education programs 30
broken down by school district by January 1, 2024, and then every 31
January 1st of odd-numbered years thereafter. 32
Sec. 5. RCW 28A.150.392 and 2024 c 127 s 2 are each amended to 33
read as follows: 34
(1)(a) To the extent necessary, funds shall be made available for 35
safety net awards for districts with demonstrated needs for special 36
education funding beyond the amounts provided through the special 37
education funding formula under RCW 28A.150.390. 38
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(b) If the federal safety net awards based on the federal 1
eligibility threshold exceed the federal appropriation in any fiscal 2
year, then the superintendent shall expend all available federal 3
discretionary funds necessary to meet this need. 4
(2) Safety net funds shall be awarded by the state safety net 5
oversight committee subject to the following conditions and 6
limitations: 7
(a) The committee shall award additional funds for districts that 8
can convincingly demonstrate that all legitimate expenditures for 9
special education exceed all available revenues from state funding 10
formulas. When determining award eligibility and amounts (([,])), the 11
committee shall limit its review to relevant documentation that 12
illustrates adherence to award criteria. The committee shall not make 13
determinations regarding the content of individualized education 14
programs beyond confirming documented and quantified services and 15
evidence of corresponding expenditures for which a school district 16
seeks reimbursement. 17
(b) In the determination of need, the committee shall consider 18
additional available revenues from federal sources.19
(c) Differences in program costs attributable to district 20
philosophy, service delivery choice, or accounting practices are not 21
a legitimate basis for safety net awards. 22
(d) In the determination of need, the committee shall require 23
that districts demonstrate that they are maximizing their eligibility 24
for all state revenues related to services for students eligible for 25
special education and all federal revenues from federal impact aid, 26
medicaid, and the individuals with disabilities education act-Part B 27
and appropriate special projects. Awards associated with (e) ((and 28
(f))) of this subsection shall not exceed the total of a district's 29
specific determination of need. 30
(e) The committee shall then consider the extraordinary high cost 31
needs of one or more individual students eligible for and receiving 32
special education. Differences in costs attributable to district 33
philosophy, service delivery choice, or accounting practices are not 34
a legitimate basis for safety net awards. 35
(f) ((Using criteria developed by the committee, the committee 36
shall then consider extraordinary costs associated with communities 37
that draw a larger number of families with children in need of 38
special education services, which may include consideration of 39
proximity to group homes, military bases, and regional hospitals. 40
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Safety net awards under this subsection (2)(f) shall be adjusted to 1
reflect amounts awarded under (e) of this subsection.2
(g))) The committee shall then consider the extraordinary high 3
cost needs of one or more individual students eligible for and 4
receiving special education served in residential schools, programs 5
for juveniles under the department of corrections, and programs for 6
juveniles operated by city and county jails to the extent they are 7
providing a secondary program of education. 8
(((h))) (g) The maximum allowable indirect cost for calculating 9
safety net eligibility may not exceed the federal restricted indirect 10
cost rate for the district plus one percent. 11
(((i))) (h) Safety net awards shall be adjusted based on the 12
percent of potential medicaid eligible students billed as calculated 13
by the superintendent of public instruction in accordance with 14
chapter 318, Laws of 1999. 15
(((j))) (i) Safety net awards must be adjusted for any unresolved 16
audit findings or exceptions related to special education funding. 17
Safety net awards may only be adjusted for errors in safety net 18
applications or individualized education programs that materially 19
affect the demonstration of need. 20
(3) The superintendent of public instruction shall adopt such 21
rules and procedures as are necessary to administer the special 22
education funding and safety net award process. By December 1, 2018, 23
the superintendent shall review and revise the rules to achieve full 24
and complete implementation of the requirements of this subsection 25
and subsection (4) of this section including revisions to rules that 26
provide additional flexibility to access community impact awards. 27
Before revising any standards, procedures, or rules, the 28
superintendent shall consult with the office of financial management 29
and the fiscal committees of the legislature. In adopting and 30
revising the rules, the superintendent shall ensure the application 31
process to access safety net funding is streamlined, timelines for 32
submission are not in conflict, feedback to school districts is 33
timely and provides sufficient information to allow school districts 34
to understand how to correct any deficiencies in a safety net 35
application, and that there is consistency between awards approved by 36
school district and by application period. The office of the 37
superintendent of public instruction shall also provide technical 38
assistance to school districts in preparing and submitting special 39
education safety net applications. 40
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(4)(a) On an annual basis, the superintendent shall survey 1
districts regarding their satisfaction with the safety net process 2
and consider feedback from districts to improve the safety net 3
process. Each year by December 1st, the superintendent shall prepare 4
and submit a report to the office of financial management and the 5
appropriate policy and fiscal committees of the legislature that 6
summarizes the survey results and those changes made to the safety 7
net process as a result of the school district feedback.8
(b) By December 1, 2024, the office of the superintendent of 9
public instruction must develop a survey requesting specific feedback 10
on the safety net application process from school districts with 11
3,000 or fewer students. The survey must include, at a minimum, 12
questions regarding the average amount of time school district staff 13
spend gathering safety net application data, filling out application 14
forms, and correcting application deficiencies. The survey must also 15
include questions to help identify which application components are 16
the most challenging and time consuming for school districts to 17
complete. By December 1, 2025, the office of the superintendent of 18
public instruction must use this feedback to implement a simplified, 19
standardized safety net application for all school districts that 20
reduces barriers to safety net funding. 21
(5) The safety net oversight committee appointed by the 22
superintendent of public instruction shall consist of:23
(a) One staff member from the office of the superintendent of 24
public instruction; 25
(b) Staff of the office of the state auditor who shall be 26
nonvoting members of the committee; and 27
(c) One or more representatives from school districts or 28
educational service districts knowledgeable of special education 29
programs and funding. 30
(6)(((a))) Beginning in the 2025-26 school year, the office of 31
the superintendent of public instruction must distribute safety net 32
awards to school districts on a quarterly basis if the following 33
criteria are met:34
(a) The safety net award is provided for a high-cost student who 35
receives special education services from an approved nonpublic agency 36
located outside of the state of Washington;37
(b) The school district successfully applied for and received a 38
safety net award for the high-cost student in a prior school year and 39
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the student's placement has not changed since that safety net award 1
was granted; and 2
(c) The school district meets all other safety net award 3
eligibility requirements as determined by the safety net oversight 4
committee.5
(7) Beginning in the ((2019-20)) 2025-26 school year, a high-need 6
student is eligible for safety net awards from state funding under 7
subsection (2)(e) and (((g))) (f) of this section if the student's 8
individualized education program costs exceed ((two and three-9
tenths)) 1.5 times the average per-pupil expenditure as defined in 10
Title 20 U.S.C. Sec. 7801, the every student succeeds act of 2015((.11
(b) Beginning in the 2023-24 school year, a high-need student is 12
eligible for safety net awards from state funding under subsection 13
(2)(e) and (g) of this section if the student's individualized 14
education program costs exceed:15
(i) 2 times the average per-pupil expenditure, for school 16
districts with fewer than 1,000 full-time equivalent students;17
(ii) 2.2 times the average per-pupil expenditure, for school 18
districts with 1,000 or more full-time equivalent students.19
(c) For purposes of (b) of this subsection, "average per-pupil 20
expenditure" has the same meaning as in 20 U.S.C. Sec. 7801, the 21
every student succeeds act of 2015, and excludes )), excluding safety 22
net funding provided in this section. 23
NEW SECTION. Sec. 6. This act takes effect September 1, 2025.24
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